PURPOSE: This rule specifies information which must be contained in contracts for the services of public adjusters. It requires that the right of cancellation provided in section 325.050, RSMo be disclosed in each contract by which an insured employs a public adjuster to adjust a fire loss.

1. (1) Every contract for services to be rendered by a public adjuster within the scope of Chapter 325, RSMo shall contain the following statement. It shall be in boldface ten (10)- point or larger type (except for the statute included) and located conspicuously on the front face of the contract. “THIS CON- TRACT MAY BE CANCELLED WITHIN THREE (3) DAYS AFTER THE OWNER OF THE DAMAGED PROPERTY HAS SIGNED THIS AGREEMENT. MISSOURI LAW SAYS: ‘1. The owner of damaged property has the right to cancel any agreement entered into with a licensed public adjuster or a licensed public adjuster solicitor until midnight of the third business day after the day on which the agreement was signed.’ ‘2. Cancellation occurs when the buyer gives written notice of cancellation to the licensed public adjuster or licensed public adjuster solicitor at the address stated in the agreement between the parties. Notice of cancellation may be given by mail and is given when deposited in a United States mail box properly addressed FINANCIAL INSTITUTIONS AND PROFESSIONAL REGISTRATION Division 700—Insurance Licensing

and postage prepaid. Notice of cancellation must contain the written intention of the owner to cancel the agreement. No liability accrues to the owner when the agreement is cancelled within the period, except for reasonable expenses incurred in preserving the damaged premises during the said three (3)-day period.’ Section 325.050, RSMo.”

1. (2) Every contract for services to be rendered by a public adjuster within the scope of Chapter 325, RSMo shall clearly indicate the time, date and place of execution of the contract. This information shall be part of the contract and shall be placed thereon before execution.
2. (3) The director reserves the right to approve forms of contracts containing language other than that specified in section (1) of this regulation if the language reasonably discloses to the insured his/her statutory rights under section 325.050, RSMo and is otherwise consistent with all other provisions of law and regulations promulgated.

AUTHORITY: sections 325.050 and 374.045, RSMo 2000.* This rule was previously filed as 4 CSR 190-21.010. Original rule filed July 15, 1976, effective Dec. 20, 1976. Amended: Filed Aug. 16, 1977, effective Dec. 11, 1977. Amended: Filed Nov. 2, 1989, effective Feb. 15, 1990. Emergency rescission filed Feb. 9, 1990, effective Feb. 20, 1990, expired May 20, 1990. Amended: Filed March 19, 1990, effective June 28, 1990. Amended: Filed Nov. 30, 2007, effective July 30, 2008. *Original authority: 325.050, RSMo 1973 and 374.045, RSMo 1967, amended 1993, 1995.